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March 2016 CUSTOMIZATION: A BLESSING OR A CURSE? REMOVING THE BARRIERS TO INNOVATION AND CHANGE If you want to achieve and sustain a competitive edge in today’s global, digital economy, Enterprise Resource Planning (ERP) can be an important tool in your arsenal. If you define ERP as Mint Jutras does, as an integrated suite of modules that forms the operational and transactional system of record for your business, every business needs it. Yet in spite of the cost and effort invested in ERP, few realize its full potential. While there are many obstacles encountered along the way, according to the 2016 Mint Jutras Enterprise Solution Study, the toprated challenge to achieving the goals of ERP is related to customizations. In a world where people and enterprises alike want things “their way,” it is easy to understand why so many companies have customized solutions. What is not so easy to understand is why these customizations still cause so many headaches. Next generation ERP should allow you to personalize, configure and extend solutions without creating obstacles to innovation and realization of goals. Clearly, we have a disconnect between possibility and reality. If customizations are holding you back from achieving the full potential of your solutions, perhaps you are going about it all wrong, or maybe you just need a new ERP. WHY CUSTOMIZE? YES, IT MATTERS Before going any further, it is perhaps wise to question the motivation behind customizing the software that runs your business, because the “why” is often just as important as the “how.” In the early days of ERP these customizations often resulted from limitations of the software, resistance to change, or some combination of both. This set a precedent that continues today, sometimes resulting in changes that simply may not be necessary. The depth and breadth of early ERP was very limited compared to the ever expanding footprint of solutions today, often leaving functional gaps that were filled with customizations or other point solutions. Even if a complementary solution was purchased to fill the gap, more often than not integration with ERP meant custom code. Furthermore, business processes built into early ERP solutions weren’t necessarily the most intuitive or the most efficient. Even with lots of training, these systems didn’t work exactly the way people worked, which meant the same ERP that was supposed to make life easier, sometimes made it harder. Mint Jutras Definition of ERP ERP is an integrated suite of modules that provides the operational and transactional system of record of your business. Because requirements across different types of businesses, the components required by an individual business will also vary, but today most ERP solutions extend beyond these minimum requirements. Data Source In this report, Mint Jutras references data collected from its 2016 Enterprise Solution Study, investigating goals, challenges and status and also benchmarked performance of software used to run a business Over 450 responses have been collected so far (the survey is still open), from companies across a broad range of industries. This sample included responses from companies of all sizes, ranging from very small to very large enterprises.

Customization Blessing or Curse...Customization:!ABlessing!Or!ACurse?!! Page2!of!8! Even!where!features!and!functions!were!available,!the!lookandfeel,aswellas! the!workflowdictatedby!ERP!was!rigid!and

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Page 1: Customization Blessing or Curse...Customization:!ABlessing!Or!ACurse?!! Page2!of!8! Even!where!features!and!functions!were!available,!the!lookandfeel,aswellas! the!workflowdictatedby!ERP!was!rigid!and

 

 

            March  2016  

 

 

CUSTOMIZATION:  A  BLESSING  OR  A  CURSE?    REMOVING  THE  BARRIERS  TO  INNOVATION  AND  CHANGE  

If  you  want  to  achieve  and  sustain  a  competitive  edge  in  today’s  global,  digital  economy,  Enterprise  Resource  Planning  (ERP)  can  be  an  important  tool  in  your  arsenal.  If  you  define  ERP  as  Mint  Jutras  does,  as  an  integrated  suite  of  modules  that  forms  the  operational  and  transactional  system  of  record  for  your  business,  every  business  needs  it.  Yet  in  spite  of  the  cost  and  effort  invested  in  ERP,    few  realize  its  full  potential.  While  there  are  many  obstacles  encountered  along  the  way,  according  to  the  2016  Mint  Jutras  Enterprise  Solution  Study,  the  top-­‐rated  challenge  to  achieving  the  goals  of  ERP  is  related  to  customizations.  

In  a  world  where  people  and  enterprises  alike  want  things  “their  way,”  it  is  easy  to  understand  why  so  many  companies  have  customized  solutions.  What  is  not  so  easy  to  understand  is  why  these  customizations  still  cause  so  many  headaches.  Next  generation  ERP  should  allow  you  to  personalize,  configure  and  extend  solutions  without  creating  obstacles  to  innovation  and  realization  of  goals.  Clearly,  we  have  a  disconnect  between  possibility  and  reality.  If  customizations  are  holding  you  back  from  achieving  the  full  potential  of  your  solutions,  perhaps  you  are  going  about  it  all  wrong,  or  maybe  you  just  need  a  new  ERP.  

WHY  CUSTOMIZE?  YES,  IT  MATTERS  Before  going  any  further,  it  is  perhaps  wise  to  question  the  motivation  behind  customizing  the  software  that  runs  your  business,  because  the  “why”  is  often  just  as  important  as  the  “how.”  In  the  early  days  of  ERP  these  customizations  often  resulted  from  limitations  of  the  software,  resistance  to  change,  or  some  combination  of  both.  This  set  a  precedent  that  continues  today,  sometimes  resulting  in  changes  that  simply  may  not  be  necessary.  

The  depth  and  breadth  of  early  ERP  was  very  limited  compared  to  the  ever-­‐expanding  footprint  of  solutions  today,  often  leaving  functional  gaps  that  were  filled  with  customizations  or  other  point  solutions.  Even  if  a  complementary  solution  was  purchased  to  fill  the  gap,  more  often  than  not  integration  with  ERP  meant  custom  code.    

Furthermore,  business  processes  built  into  early  ERP  solutions  weren’t  necessarily  the  most  intuitive  or  the  most  efficient.  Even  with  lots  of  training,  these  systems  didn’t  work  exactly  the  way  people  worked,  which  meant  the  same  ERP  that  was  supposed  to  make  life  easier,  sometimes  made  it  harder.  

Mint Jutras Definition of ERP

ERP  is  an  integrated  suite  of  modules  that  provides  the  operational  and  transactional  system  of  record  of  your  business.  Because  requirements  across  different  types  of  businesses,  the  components  required  by  an  individual  business  will  also  vary,  but  today  most  ERP  solutions  extend  beyond  these  minimum  requirements.  

Data Source In  this  report,    Mint  Jutras  references  data  collected  from  its  2016  Enterprise  Solution  Study,  investigating  goals,  challenges  and  status  and  also  benchmarked  performance  of  software  used  to  run  a  business  

Over  450  responses  have  been  collected  so  far  (the  survey  is  still  open),  from  companies  across  a  broad  range  of  industries.  This  sample  included  responses  from  companies  of  all  sizes,  ranging  from  very  small  to  very  large  enterprises.    

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Even  where  features  and  functions  were  available,  the  look  and  feel,  as  well  as  the  workflow  dictated  by  ERP  was  rigid  and  drew  many  complaints.  These  complaints  often  resulted  in  customization.  

Unfortunately  customization  also  used  to  mean  mucking  around  in  source  code,  which  built  barriers  to  moving  forward  with  updates  and  upgrades.  That  was  because  in  the  past  all  the  logic  was  “programmed”  into  that  source  code.  This  made  business  applications  like  ERP  rigid  and  inflexible.  Sure,  there  were  always  some  configuration  options,  but  those  options  were  constrained  by  the  logic  embedded  in  the  source  code.  

Therefore,  once  you  heavily  customized  the  code,  there  was  an  excellent  chance  of  being  stuck.  Even  as  your  maintenance  dollars  were  funding  your  solution  provider’s  innovation,  you  were  never  able  to  take  full  advantage  of  upgrades.  Even  if  your  solution  provider  has  been  devoted  to  filling  those  functional  gaps,  have  you  been  just  as  devoted  to  eliminating  customizations  wherever  and  whenever  possible  in  order  to  consume  that  innovation?    

If  not,  then  perhaps  your  customizations  were  less  motivated  by  functional  gaps  and  more  motivated  by  a  “we’ve  always  done  it  that  way”  mentality.  This  could  be  pervasive  throughout  the  company,  or  the  result  of  one  or  more  individuals  who  were  (are?)  resistant  to  change.  Years  later  you  might  not  even  be  able  to  explain  why  that  customization  was  needed.  Maybe  Edith  in  the  receiving  department  refused  to  adapt  to  the  new  system.  Then  again,  maybe  Edith  retired  five  years  ago.  

Or  perhaps  you  never  eliminated  those  customizations  simply  because  it  took  so  much  time,  effort  and  money  to  put  them  in.  Once  in,  you  figured,  if  it’s  not  broken,  why  fix  it?  But  what  else  did  you  sacrifice  because  of  them?  

GOOD  REASONS  AND  BAD  REASONS  There  are  many  good  reasons  to  customize  solutions,  but  equally  as  many  bad  reasons.  Customizing  a  solution  to  provide  a  clear  differentiation  in  your  market  is  a  good  reason.  Requiring  a  new  system  to  operate  exactly  the  same  as  an  old  system,  or  worse  yet,  no  system  at  all,  is  a  bad  reason.  Why  bother  with  a  new  one?    

Personalizing  the  user  interface  for  your  company,  to  roles  within  your  organization,  or  even  to  the  needs  of  individuals  are  all  good  reasons  to  customize,  particularly  if  it  encourages  engagement  with  the  system.  In  those  early  days,  a  small  percentage  of  employees  in  any  company  actually  put  their  hands  directly  on  ERP.  You  had  your  heads-­‐down  data  entry  folks  and  a  few  super  users.  Those  days  should  be  long  gone,  and  if  you  are  still  operating  like  this,  you  are  indeed  stuck  in  the  past.  Today  on  average  64%  of  employees  have  direct  access  to  ERP.  The  last  thing  you  want  is  to  have  them  spend  more  time  trying  to  work  around  the  system  than  with  it.  

Fast Facts üThe  top  challenge  this  year  preventing  companies  from  achieving  the  goals  set  for  ERP  was  “Customization  related  challenges”  

ü61%  of  companies  say  customizations  are  somewhat  to  very  likely  to  prevent  them  from  upgrading  

Today  on  average  64%  of  employees  have  direct  access  to  ERP.  The  last  thing  you  want  is  to  have  them  spend  more  time  trying  to  work  around  the  system  than  with  it.  

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And  that  interaction  with  ERP  should  be  far  less  labor-­‐intensive  today  than  it  ever  used  to  be.  While  user  interfaces  have  become  more  intuitive  and  visually  appealing,  the  best  user  interface  is  often  no  user  interface.  Steps  can  be  automated,  and  data  can  be  collected  from  any  number  of  different  sources,  ranging  from  devices  (machines,  equipment,  things)  to  the  Internet.  Workflows  can  (and  should)  be  customized  to  your  business  processes,  governed  by  business  rules  that  can  be  easily  changed  as  business  changes.  It  should  be  just  as  easy  to  get  data  out  of  ERP  than  it  is  to  get  it  in  –  even  if  you  can’t  anticipate  all  your  data  needs  up  front.  

In  a  sense,  all  these  “good”  reasons  result  in  “customizing”  ERP,  but  not  in  the  same  sense  as  before.  There  should  be  no  invasive  code  changes  required.  In  fact,  while  historically  information  technology  (IT)  staff  and  developers  were  intimately  involved,  in  many  of  the  most  modern  ERP  solutions  today,  non-­‐technical  business  users  and  decision-­‐makers  can  make  these  changes.  So  let’s  not  even  call  them  customizations.  Think  instead  of  personalization,  configuration  and  extensibility.  

HOW  DO  YOU  CUSTOMIZE?  LET  ME  COUNT  THE  WAYS    Keeping  in  mind  that  most  any  change  to  the  software  or  the  user  experience  is  typically  referred  to  as  “customization,”  we  asked  our  2016  Enterprise  Solution  Study  participants  what  level  of  customization  they  believe  they  need.  Respondents  were  allowed  to  select  as  many  as  needed  from  a  lengthy  list  (Figure  1).  

Figure  1:  What  level  of  customization  do  you  believe  you  need?  

 Source: Mint Jutras 2016 Enterprise Solution Study

“Customization” Many  modern,  technology-­‐enabled  ERP  solutions  today  deliver  a  high    level  of  personalization  and  configuration  without  customization  as  defined    in  the  classic  sense  of  invasive  code  changes.  

 

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Figure  1  is  sorted  by  the  popularity  of  these  different  types  of  customization,  but  all  of  these  easily  fall  into  one  or  more  of  the  following  categories:  

• Reporting  and  inquiry  • Look  and  feel  of  the  user  interface  • User-­‐defined  data  fields  and  structures  • Logic,  features,  functions,  including  workflow  

The  bulleted  list  above  is  sequenced  (from  least  to  most)  in  terms  of  likelihood  these  software  changes  would/should  result  in  actual  customization  in  the  classic  sense  of  the  term,  requiring  invasive  code  changes.  

REPORTING  AND  INQUIRY  Early  ERP  solutions  were  famous  (or  perhaps  infamous)  for  being  much  harder  to  get  data  out  of  than  into.  First  of  all,  it  is  very  hard  for  solution  providers  to  anticipate  the  exact  reporting  needs  of  any  customer,  much  less  all  customers.  This  is  definitely  an  area  where  one  size  does  not  fit  all.  And  let’s  face  it;  those  reporting  requirements  can  change  over  time.    

Today  it  is  less  important  to  judge  an  ERP  solution  by  the  depth  and  breadth  of  reporting  than  it  is  to  judge  it  by  the  ease  with  which  existing  reports  can  be  modified  and  new  reports  added.  While  this  task  used  to  sit  squarely  on  the  shoulders  of  the  IT  department,  next  generation  solutions  put  these  capabilities  directly  in  the  hands  of  the  user.  But  for  this  to  be  successful,  the  process  cannot  intimidate  business  users.  They  need  to  be  able  to  easily  locate  data,  drag  it  and  drop  it  into  a  format  that  is  easily  read  and  interpreted.  Being  visually  appealing  is  also  a  plus,  and  that  often  means  pretty  pictures  (a.k.a.  charts  and  graphs).    

Each  decisionmaker  needs  their  own  personalized  dashboard  and  a  portal  that  is  truly  a  gateway  to  data  that  will  answer  their  questions  today  and  tomorrow.  And  it  is  no  longer  enough  to  rely  on  laptops  and  desktops  or  worse  yet,  subordinates  to  do  the  digging.  Answers  need  to  be  at  their  fingertips,  available  on  any  mobile  device  they  happen  to  carry.    

If  your  business  leaders  are  still  using  smart  phones  as  dumb  phones  to  call  someone  else  for  answers,  you  are  stuck  in  the  past.  If  you  still  have  to  wait  in  line  to  get  your  IT  department  to  put  a  new  field  on  a  report,  change  the  sorting  and  selection,  or  the  formatting,  or  even  create  an  entirely  new  report,  it  is  important  to  know  that  with  today’s  solutions,  it  doesn’t  have  to  be  that  way.  That  alone  might  be  a  hint  your  existing  solution  may  be  more  of  an  inhibitor  than  an  enabler.  

LOOK  AND  FEEL  OF  THE  USER  INTERFACE  Reporting,  inquiry,  dashboards  and  portals  are  also  related  to  the  overall  look  and  feel  of  the  solution  and  that  translates  to  the  user  interface.  This  look  and  feel  used  to  be  built  into  software.  But  for  years  now,  ERP  has  been  separated  

If  you  still  have  to  wait  in  line  to  get  your  IT  department  to  put  a  new  field  on  a  report,  change  the  sorting  and  selection,  or  the  formatting,  or  even  create  an  entirely  new  report,  it  is  important  to  know  that  with  today’s  solutions,  it  doesn’t  have  to  be  that  way.  

Today  it  is  less  important  to  judge  an  ERP  solution  by  the  depth  and  breadth  of  reporting  than  it  is  to  judge  it  by  the  ease  with  which  existing  reports  can  be  modified  and  new  reports  added.  

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into  layers  and  the  first  layer  to  be  removed  from  the  guts  of  ERP  was  the  user  interface.  Over  the  years,  solution  providers  had  a  lot  of  incentive  to  do  this,  even  apart  from  making  users  happy.  As  more  and  more  companies  expanded  globally,  a  user  interface  that  could  easily  be  translated  into  multiple  languages  became  table  stakes.  The  easiest  way  to  insure  speed  and  quality  of  that  translation  was  to  extract  the  bits  that  needed  to  be  translated  from  the  logic  of  the  software.    In  doing  that,  the  user  interface  became  infinitely  more  customizable  without  ever  touching  source  code.  Changing  field  names  was  as  simple  as  translating  them.  

Of  course  this  was  just  the  first  step.  Once  companies  saw  how  easy  this  was,  they  wanted  more.  They  wanted  to  move  things  around  on  the  screen,  hide  data  and  maybe  even  add  more.  They  wanted  to  make  full  use  of  a  large  screen  or  make  the  most  out  of  the  limited  real  estate  on  the  screens  of  their  mobile  devices.  Extracting  the  user  interface  from  the  underlying  source  code  doesn’t  necessarily  mean  a  non-­‐technical  business  user  can  accomplish  all  this.  If  you  can’t  do  this  with  your  current  system,  you  should  know  that  new,  technology-­‐enabled  solutions  can…  safely  and  securely.  

DATA  FIELDS  AND  STRUCTURES  The  need  to  add  user-­‐defined  data  fields  placed  in  the  top  three  types  of  customization  required.  This  option  is  actually  quite  common  even  in  older,  legacy  solutions.  There  have  always  been  a  few  of  these  fields  that  could  be  tagged  with  a  label  and  used  as  needed  by  the  customer.  The  problem  was  (and  still  is  for  older  solutions)  that’s  about  all  you  could  do  with  them.    

In  addition,  they  were  typically  attached  to  a  particular  record  in  a  particular  file.  You  might  have  user-­‐defined  fields  in  the  part  master  or  the  customer  record  or  maybe  the  vendor  master  file,  but  perhaps  you  need  a  user-­‐defined  field  for  a  supplier  part  number.  This  will  vary  by  each  of  the  possible  suppliers  for  the  part,  so  you  can’t  associate  it  with  the  part  itself.    And  you  can’t  put  it  in  the  supplier  master  record  because  it  will  vary  by  part.  So  unless  there  is  a  user-­‐defined  field  in  the  file  that  associates  multiple  vendors  for  a  part,  you  have  no  place  to  put  your  supplier  part  number  and  the  customization  becomes  much  more  disruptive  than  re-­‐labeling  a  field.  

Over  time,  solution  providers  have  been  adding  more  flexibility  for  user-­‐defined  data,  but  do  your  due  diligence.  Determine  any  limitations  of  these  user-­‐defined  fields  and  also  figure  out  what  you  can  (and  can’t)  actually  do  with  them  once  you  have  them.  Can  you  build  any  logic  around  them  or  apply  any  business  rules?  Does  this  involve  source  code  changes?    

Of  course  sometimes  the  requirement  for  user-­‐defined  data  can  extend  beyond  adding  a  single  field.  Take  our  example  of  the  supplier  part  number.  While  newer  solutions  are  very  likely  to  support  linking  multiple  possible  suppliers  to  a  purchased  part,  older  solutions  or  even  brand  new,  modern  solutions  (still  under  development)  might  not.  In  this  case  you  don’t  simply  

There  have  always  been  a  few  user-­‐defined  fields  that  could  be  tagged  with  a  label  and  used  as  needed  by  the  customer.  The  problem  was  (and  still  is  for  older  solutions)  that’s  about  all  you  could  do  with  them.    

 

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need  a  user-­‐defined  field,  you  need  a  new  data  structure.  Our  example  is  a  relatively  simple  one,  and  adding  or  changing  the  data  model  or  the  structure  of  the  data  can  be  far  more  complicated  than  this.  Investigate  carefully  the  difficulty  involved.  

To  better  understand  the  opportunities,  as  well  as  the  limitations,  you  will  most  likely  need  to  have  some  level  of  understanding  of  how  the  solution  is  built.  Many  today  are  built  on  “platforms”  that  allow  developers  to  create  data  structures  and  software  without  the  complexity  of  building  the  infrastructure  typically  associated  with  developing  an  enterprise  application.  You  will  need  some  technical  expertise  in  evaluating  these  platforms.  If  you  don’t  have  that  expertise  in  house,  there  are  plenty  of  consultants  available  to  help.  Clearly  developers  benefit  from  using  the  services  delivered  with  a  platform,  speeding  the  development  process,  but  this  can  also  translate  to  benefits  to  the  business,  helping  companies  keep  up  with  the  accelerating  pace  of  change.  

Which  brings  us  to  the  final  category  of  customization  and  the  one  most  likely  to  involve  potentially  invasive  and  disruptive  code  changes.  As  important  as  the  user  interface  is  today,  it  is  important  to  look  at  the  overall  user  experience.  That  means  not  only  how  it  looks  and  feels,  but  also  what  it  does  for  you.  

LOGIC,  FEATURES  AND  FUNCTIONS  What  do  you  do  when  the  software  doesn’t  exactly  match  your  business?  This  may  or  may  not  involve  entirely  new  features  and  functions.  More  often  than  not,  this  mismatch  is  simply  the  result  of  the  workflow  not  being  aligned  completely  with  your  processes.  Early  ERP  solutions  largely  embedded  the  sequence  of  events  into  the  code,  perhaps  with  some  switch  settings  added  to  configure  certain  steps  within  the  processes.    

Modern  systems  are  more  likely  to  define  the  flow  of  work  separately.  Think  of  it  as  a  separate  layer,  much  like  the  user  interface  layer.  Not  only  can  the  flow  be  configured,  but  it  can  also  be  governed  by  a  set  of  business  rules.  These  rules  might  be  used  to  determine  behavior  of  a  function  or  to  configure  next  steps  in  a  workflow.  Business  rules  might  define  different  thresholds  for  approval  (e.g.  all  purchase  orders  require  approval  but  those  over  a  certain  value  require  an  extra  step  in  the  approval  process).  To  be  most  flexible  and  adaptive,  these  business  rules  should  not  be  buried  in  the  source  code.  Look  for  the  equivalent  of  a  rules  engine  that  allows  non-­‐technical  users  to  manage  and  maintain  them.  

These  business  rules  might  also  be  used  to  trigger  alerts,  notifying  managers  when  events  occur  (e.g.  a  big  order  comes  in)  or  when  they  fail  to  occur  (a  scheduled  delivery  date  is  missed).  With  the  “right”  system,  workflows  can  be  configured  extensively  without  ever  causing  you  to  “customize”  in  the  traditional  sense.  And  if  you  need  to  further  tailor  business  processes  that  are  quite  universal  across  all  businesses  (e.g.  processing  payments,  collecting  cash,  

Many  solutions  today  are  built  on  “platforms”  that  allow  developers  to  create  data  structures  and  software  without  the  complexity  of  building  the  infrastructure  typically  associated  with  developing  an  enterprise  application.  

Modern  systems  are  more  likely  to  define  the  flow  of  work  separately.  Think  of  it  as  a  separate  layer,  much  like  the  user  interface  layer.  Not  only  can  the  flow  be  configured,  but  it  can  also  be  governed  by  a  set  of  business  rules.  

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issuing  purchase  orders.  receiving  materials,  etc.),  you  might  want  to  circle  back  to  the  original  question:  Why?    

Are  you  changing  the  software  simply  to  perpetuate  a  process  that  is  different,  but  not  better?  If  the  change  does  not  add  specific  value  or  somehow  differentiate  you  in  your  market,  don’t  do  it.  If  you  have  already  made  invasive  code  changes  that  are  limiting  your  ability  to  move  forward,  innovate  and  grow,  remove  them  and  take  better  advantage  of  updates  your  existing  vendor  has  been  delivering.  Of  course,  if  this  is  a  very  substantial  effort,  you  might  find  implementing  an  entirely  new,  modern,  configurable  solution  is  actually  the  better  and  easier  route  to  take.  

While  the  need  for  this  type  of  workflow  configuration  is  very  common,  it  may  not  suffice.  About  one  in  five  of  our  survey  respondents  (20%)  expressed  the  need  to  develop  entirely  new  features  or  functions  not  likely  to  be  included  in  commercially  available  software.  This  is  the  requirement  most  likely  to  require  you  to  develop  your  own  software,  making  the  choice  of  development  platform  very  important.    

An  added  word  of  caution  though…  don’t  “customize”  your  ERP;  extend  it.  Develop  these  new  features  and  functions  and  integrate  them  where  needed,  but  in  a  way  that  is  more  loosely  coupled  than  tightly  embedded.  What’s  the  difference,  and  more  importantly,  what  is  the  advantage  of  loosely  coupling?  

Traditional  ERP  was  developed  as  a  tightly  integrated  set  of  modules.  Not  only  do  all  modules  of  an  ERP  solution  share  a  common  database,  but  all  are  developed  using  the  same  tools  and  technology  and  they  all  move  forward  in  lock  step.  This  eliminates  data  redundancy  and  any  need  for  separate  integration  efforts.  But  it  also  means  all  the  parts  need  to  move  forward  in  lock  step.  If  you  apply  the  same  concept  to  a  new  “custom”  function,  you  have  the  same  problem  you  have  always  had  with  invasive  source  code  changes.  You  can’t  upgrade  to  the  latest  release  without  taking  a  serious  look  at  that  custom-­‐developed  code.  

Instead,  develop  your  new  function  as  a  separate  component  and  loosely  couple  it  to  ERP.  That  way,  if  you  wanted  to  replace  it,  you  would  just  have  to  uncouple  it  and  swap  in  a  new  one  –  sort  of  like  uncoupling  one  of  the  cars  on  a  train.  It  just  takes  a  standard  coupling,  right?  Of  course  it  is  a  little  more  complicated  than  that,  but  that’s  the  general  idea.  

It  is  beyond  our  scope  here  to  fully  detail  the  difference  between  a  loosely  coupled  extension  and  customization  embedded  in  your  ERP.  Suffice  to  say  it  will  likely  involve  object-­‐oriented  development  and  services  oriented  architecture.  If  you  are  running  on  older,  perhaps  proprietary  architectures  that  prohibit  you  from  taking  advantage  of  these  newer  technologies…  that  again  might  be  sufficient  reason  to  consider  replacing  what  you  have  today.  

Are  you  changing  the  software  simply  to  perpetuate  a  process  that  is  different,  but  not  better?  If  the  change  does  not  add  specific  value  or  somehow  differentiate  you  in  your  market,  don’t  do  it.  

Don’t  “customize”  your  ERP;  extend  it.  

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CONCLUSION  AND  RECOMMENDATIONS  In  your  company,  is  customization  a  blessing  or  a  curse  that  prevents  you  from  realizing  the  full  potential  of  your  ERP?  Customizations  that  build  barriers  to  innovation  and  growth  are  a  curse.  If  your  customizations  prevent  you  from  

• consuming  the  innovation  provided  by  your  solution  provider  • adapting  to  business  change  • seeking  new  business  and  new  business  models  

…  they  are  a  curse.    

But  customizations  can  be  a  blessing,  if  they  help  your  employees  engage  with  ERP,  allow  you  to  address  your  real  business  needs  and/or  provide  you  with  differentiation  in  your  market.  Generally  speaking,  customizations  that  are  blessings  aren’t  customizations  at  all  in  the  traditional  sense.  You  need  to  redefine  customization.  They  cannot  require  invasive  code  changes  that  inhibit  rather  than  enable  your  evolution.  Next  generation  ERP  allows  you  to  personalize,  configure  and  extend  solutions  without  creating  obstacles  to  innovation  and  realization  of  goals.  If  your  customizations  are  holding  you  back,  perhaps  it  is  time  to  re-­‐evaluate  them.  Perhaps  it  is  also  time  for  a  new  ERP.  

 

 

 

 

 

 

 

 

 

 

About  the  author:    Cindy  Jutras  is  a  widely  recognized  expert  in  analyzing  the  impact  of  enterprise  applications  on  business  performance.  Utilizing  over  40  years  of  corporate  experience  and  specific  expertise  in  manufacturing,  supply  chain,  customer  service  and  business  performance  management,  Cindy  has  spent  the  past  10  years  benchmarking  the  performance  of  software  solutions  in  the  context  of  the  business  benefits  of  technology.  In  2011  Cindy  founded  Mint  Jutras  LLC  (www.mintjutras.com),  specializing  in  analyzing  and  communicating  the  business  value  enterprise  applications  bring  to  the  enterprise.